The MUDRA (Micro Units Development and Refinance Agency) scheme was launched by the Government of India under Pradhan Mantri Mudra Yojana (PMMY). With the help of MUDRA loan, medium, micro and small enterprises can afford amounts of up to Rs. 10 Lakhs and fund their business. Specifically meant for non-agricultural enterprises, the loan is offered in three schemes: Shishu loan, Tarun loan, Kishore Loan. Shishu Loan is offered up to Rs. 50,000, while Kishore and Tarun loan offer Rs. 5 Lakhs and Rs. 10 Lakhs respectively.
MUDRA Yojana loan is basically nothing but a working capital loan, which can be used by the businesses for their regular and day-to-day operations. These include purchasing raw materials, inventory, managing the cash-flow, paying overdue bills and rent and expansion of business in general.
Today, various financial institutions offer MUDRA loans at attractive interest rates.The MUDRA Yojana loan has a lot of benefits. Let us take a look at them.
Greater Loan amounts:
As mentioned earlier, you can avail loan amounts as high as Rs. 10 lakhs, under various schemes for your enterprise through MUDRA scheme. Since the loan amount is quite high, it greatly contributes as a financial aid in the regular business operations and expansion in general.
No collateral needed:
The MUDRA Yojana loan is primarily an unsecured working capital loan. Since it is an unsecured loan, there is no need to provide any security or pledge any collateral in order to avail the loan. Thus, you can avail this loan without any collateral backing.
No Additional fees involved:
To avail this loan, there is no charge involved. Even if there are charges involved, that will be the processing fee which is 0.50% of the loan amount for above Rs. 50,001 plus additional taxes. Hence, complete transparency is ensured while you avail this loan.
Flexible Repayment Tenure:
With regards to the MUDRA Yojana Loan, the repayment tenure is quite flexible and usually ranges from 3-5 years. You can choose the tenure as per your convenience and repay the loan. You can also opt for longer tenure in order to make your payments smoothly.
Attractive interest rates:
The interest rates for MUDRA loan varies from one lender to other. It usually ranges between 9%-11% p.a.
Boost to micro enterprises:
With MUDRA loan, enterprises and businesses can get the much needed financial boost. They can take care of their requirements and finances due to the loan. In case, you fail to repay the loan, the government serves as your guarantor and will take care of the dues that need to be paid. Because of this, the burden or liability of repayment greatly reduces as the government provides the backing. This feature majorly helps small business units like shopkeepers and vendors.
So as we can see, the benefits and advantages of Yojana Loan are aplenty and it is sure to provide financial aid to a lot of small and micro enterprises. With MUDRA loan, you get funding of up to Rs. 10 Lakhs, and in case you require more amount, you can always head to Finserv MARKETS.You can avail Business Loan of up to Rs. 30 Lakhs with a smooth online process.at Finserv MARKETS or on our loan app. The documentation requirement is extremely minimal and you can get your loan approved in just 3 minutes. The repayment tenure ranges from 12-60 months and there are no hidden charges involved. And the best part is, once your application is approved, you can get the loan amount in just 24 hours. So, let your business scale new heights with Finserv MARKETS.